In Comparison to a Company, a Disadvantage of Operating as a Partnership

question 57

Multiple Choice

In comparison to a company, a disadvantage of operating as a partnership is:

• A)unlimited liability.
• B)limited life.
• C)mutual agency.
• D)all of the above.

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Definitions:

Accounting Equation

The fundamental equation of accounting stating that assets equal liabilities plus equity (Assets = Liabilities + Equity).

Opportunities in Accounting

The various career paths and growth prospects available within the field of accounting.

Private Accounting

A field of accounting that involves working within a company to process financial transactions, manage financial records, and prepare internal financial reports.

Public Accounting

The field of accounting that involves providing assurance, tax, and consulting services to the public, typically performed by certified public accountants (CPAs).